{"id":1942,"date":"2019-06-20T16:57:38","date_gmt":"2019-06-20T12:57:38","guid":{"rendered":"https:\/\/www.buyanyinsurance.com\/blog\/?p=1942"},"modified":"2024-05-06T15:38:17","modified_gmt":"2024-05-06T11:38:17","slug":"insurance-glossary-terms-that-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.buyanyinsurance.ae\/blog\/en\/insurance-glossary-terms-that-you-need-to-know\/","title":{"rendered":"Must Read: Glossary Of Insurance Terms That You Need To Know"},"content":{"rendered":"\n

Insurance can be pretty complicated, like medicine, there are specific terms that are often difficult for an ordinary person to understand. In the period we have been in the market, these are the words that we\u2019ve found our clients find either hard to understand or are unsure of:<\/p>\n\n\n\n

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Get Best Car Insurance<\/strong><\/a><\/div>\n<\/div>\n\n\n\n
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Insurance Terms simplified, A-I<\/h2>\n\n\n\n
Automobile insurance<\/strong><\/strong>

Auto insurance is a policy purchased by vehicle owners to mitigate costs associated with getting into an accident. This insurance policy covers automotive vehicles and their inhabitants in a car crash. Coverage types include liability, bodily injury, collision, and comprehensive coverage, among many others.<\/p> <\/div>

Binder<\/strong><\/strong>

A binder refers to a legal agreement issued by an insurer to allow temporary evidence of insurance until a policy can be insured. It is a statement providing immediate protection. Binders contain specific time limits.<\/p> <\/div>

Claim<\/strong><\/strong>

A claim is a request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event.<\/p> <\/div>

Deductible<\/strong><\/strong>

The amount that you pay for the covered event before your insurance plan starts to pay.<\/p> <\/div>

Exclusion<\/strong><\/strong>

These are listed items that your insurance will not cover. <\/p> <\/div>

Flat Rate Cancellation<\/strong><\/strong>

The termination of an insurance policy before it goes into effect.<\/p> <\/div>

GCC Insurance Protection Extension Program<\/strong><\/strong>

Gulf Cooperation Council citizens are those employees holding the nationality of one of the GCC countries. The employees work in GCC member countries outside their home country, so social security is extended to include them.<\/p> <\/div>

Hit and Run<\/strong><\/strong>

You are in an accident, and the other driver flees the scene, its called a hit and run.<\/p> <\/div>

Insured Declared Value (IDV)<\/strong><\/strong>

The premium is calculated based on the IDV of the vehicle; this is the depreciated worth of the vehicle agreed upon by the insurer and the policyholder.<\/p> <\/div>

Motor Vehicle Record (MVR)<\/strong><\/strong>

This statement from the Department of Motor Vehicles lists any traffic violations received by the insured party over time.<\/p> <\/div>

Non-disclosure, Misrepresentation and False Declaration<\/strong><\/strong>

These words mean pretty much the same thing in the insurance world. If you’re applying for insurance, you should disclose any information (material facts) influential to the price. Failure to do so, the above terms will bind you.<\/p> <\/div>

Own Damage Premium (OD)<\/strong><\/strong>

OD means cover against damages to your car. Payment of OD premium entitles you to claim compensation in case of theft or damage to your vehicle.<\/p> <\/div>

Proof of Loss<\/strong><\/strong>

Documents you provide to the insurer to support your request for payment losses.<\/p> <\/div>

Recoverable\/Non-Recoverable Claim<\/strong><\/strong>

A recoverable is a claim when an insurance provider can recover their repair bills from another insurance provider. For instance, if the other party in a collision was at fault. A non-recoverable is when the insurance provider has to pay for the damages.<\/p> <\/div>

SR-22<\/strong><\/strong>

A document required by the Department of Motor Vehicles (DMV) for high-risk insurance policies.<\/p> <\/div>

Term<\/strong><\/strong>

The amount of time that an insurance policy is in effect.<\/p> <\/div>

Unearned Premium<\/strong><\/strong>

The amount of time left on your insurance policy.<\/p> <\/div>

Vehicle Identification Number<\/strong><\/strong>

An alphanumeric code assigned to each vehicle that gives information such as make, model, and year.<\/p> <\/div>

Waiver of Collision Deductible<\/strong><\/strong>

Coverage purchased as part of your insurance policy. It will reimburse your collision deductible if your insured vehicle is in an accident and the person liable is an uninsured driver.<\/p> <\/div> <\/div>\n\n\n\n

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Get Best Car Insurance<\/strong><\/a><\/div>\n<\/div>\n\n\n\n
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FAQs<\/h2>\n\n\n\n

What are the common terms used in insurance?<\/h3>\n\n\n\n

Listed below are some of the most important definitions to know when searching for a health insurance plan.<\/p>\n\n\n\n